Hello, World

Dear Reader,

A wise man once said that in order to become a hedge fund manager, one must follow steps indistinguishable from that of becoming a doctor – formal education followed by residency. I am pleased to report that, as of 6.13.14, I have officially completed my 5.5-year residency and will begin formally documenting my investment process and performance. With only my personal capital at risk, the ruthless verdict of a publicly documented investment process and track record will act as my unrelenting, $10 billion LP.

My goal is to beat the market – as represented by the Dow Jones U.S. Total Stock Market Total Return index (DWCFT) – by 5% per annum, net of a 2% management fee, over all trailing periods greater than 3 years.

Broadly, my style is event-driven and value-oriented. Specifically, I break the portfolio down into the following categories (with some stealing from early Buffett, of course):

Generals. Generally undervalued issues with no particular event attached. Preferably wonderful businesses at reasonable prices. Extremely high bar to investing in a bad business with no catalyst.

Events. Generally undervalued issues with a catalyst attached: spin-offs, split-offs, recaps, transformative M&A, post-reorg, etc…

Special Situations. Market-neutral situations: merger arb, liquidations, distressed debt, etc…

Controls. Wholly- or effectively-owned (i.e. 90% ownership) businesses.

In subsequent posts I will continue to introduce myself, the investment process and the 17 Mile portfolios.

General Thoughts on this Blog:

Disclosure. It goes without saying that one should never take investment advice from a blog. With this one in particular, please do not. This site is specifically designed to act as an investment diary, a place for me to publicly document my process and performance in order to be held accountable.

Accountability. I have zero incentive to cheat the system here. All performance documentation will be backed up with account statements, which one day I hope to present as a package (with this blog) to future potential LPs and business partners.

Perfection. Ray Dalio says to know your weaknesses. I am not a perfectionist, plain and simple. While this helps enormously in investing – as it allows me to make decisions using imperfect information – it means that this blog will absolutely NOT be a neat and tidy buttoned up presentation. I will treat it as the diary it is, and make no apologies for things like random poorly-worded posts done in the middle of the night when I can’t sleep, or follow-up posts correcting poor initial thinking on an investment idea. I’m not going to wait until I have all of my thoughts on a company perfectly formed before posting my thinking. I want as much of my thinking documented as possible.


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